I check a new brokers bond and credit before doing business with them. I have also used a factor from time to time. I use D & S. They are affiliated with Internet truckstop. I like them because they charge a flat rate of 5% and are non recourse. In other words, once they take the invoice it is their responsibility to collect it and they cannot charge the account back to you. Some factors will charge the account back to you if they don't collect from them. They may also only advance a certain percentage of the invoice and discount over time, depending when the shipper or broker pays. With D&S I have my money within 2 days from when I deliver the load, as long as I sent the paperwork out the day I delivered. All I need do is drop it in any Trip Pak box. They usually have the information the next day. They fund it the day it is received and money is usually in my bank by the next day. They will direct deposit into my bank account the same or next day. If they do a wire transfer there is an additional charge. Just waiting a day can save that fee. I believe they charge $1 for direct deposit. Another thing I like about them is that I don't have to factor all of my invoices with them. Some factors require you to factor all of your receivables with them or a minimum amount of invoices with them each month. Others have a minimum fee you must pay each month. I looked at a lot of factors before going with D&S. There are a couple of others that I might consider should I leave them. I haven't sent anything to them in several months. As a footnote, if the factor won't take the business, you probably don't want to do business with them, either. If I haven't done business with the shipper or broker before, I usually call them before committing to the load to check their credit. As Steve mentioned, some brokers offer Quick Pay for a fee. Fees generally run from 1 1/2-8%. Most seem to be from 2-5%. You are much better off running on your own money, if you can. Things can get a bit tight starting out. Keep in mind that it is ultimately your decision whether you do business with a particular business or broker or not. Sometimes you can negotiate better pay terms without any discounts.

 

We also factor with D & S Factors and if I call them to check if they will factor a load and they say no then we don't do business with that Broker or Shipper. We use them as a quick credit check in addition to factoring our bills.

 

Hmmm say been hearing lots about this credit rating for brokers....how is this rating determined? I mean is this soley a business rating....or does their personal credit rating come into play?

 

K G-man
I usually go by the advice you and Steve give, so I went over to internet truck stop, every thing looked good till I got to the part of thr cost...$125 a month (gasp) ...ok is this really worth it? I mean will he come over and armoural my semi tires too for that much?
Well did join get loaded.com tho...there running a special where I get the first two weeks free....my favorite word...for free, and $25 a month seems way more reasonable.